Stellantis-Mercedes Joint Venture Nears Huge $4.7 Billion Debt Deal For EV Expansion: Report
Portfolio Pulse from Benzinga Neuro
Stellantis NV (STLA) and Mercedes-Benz Group AG are nearing a €4.4 billion ($4.7 billion) debt deal for their joint venture, Automotive Cells Company SE (ACC), to expand its electric vehicle battery production in Europe. The funds will be used to enlarge ACC's French factory and to establish new sites in Germany and Italy, with a consortium of banks likely backing the deal. This move aligns with the EU's goal to develop a local EV supply chain and reduce reliance on Asian battery suppliers. Stellantis and Mercedes plan to increase their equity stakes in ACC.
February 09, 2024 | 10:36 am
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Stellantis NV is part of a significant debt deal to expand the EV battery production capacity in Europe, which could enhance its position in the EV market and potentially alleviate governmental pressure in Italy.
The debt deal directly involves Stellantis, aiming to expand its EV battery production capabilities. This expansion is crucial for Stellantis to maintain competitiveness in the EV market and could positively impact its stock by demonstrating growth and strategic planning. Additionally, addressing production concerns in Italy could improve its domestic relations.
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